Venture capital investments in India decline by 34%

Our Bureau Chennai | Updated on January 17, 2018 Published on July 01, 2016

venture capital eps

Number of deals dropped to 94from 112, saysVenture Intelligence

Venture capital investment in Indian companies has declined by 34 per cent to $324 million in quarter ended June 2016 as against $491 million in same quarter last year.

The number of VC deals dropped to 94 (112), according to Chennai-based Venture Intelligence, which tracks VC investments.

In April 2016 quarter, there were 103 deals worth $299 million, says a release from Venture Intelligence.

VC investment during June quarter was led by fashion e-tailer Voonik, which raised $20-million second round led by existing investor Sequoia Capital India.

This was followed by $16-million third-round investment in playschool company KLAY Schools led by Peepul Capital with participation from existing investor Kaizen PE.

Other start-ups that attracted significant capital during June quarter include healthcare products e-tailer 1mg that raised $15-million second round from Sequoia Capital India, Maverick Capital and Omidyar Network, and online tax-filing company ClearTax attracting $12 million from SAIF Partners following a $2-million round from Sequoia Capital India and US-based Founders Fund.

IT and IT-enabled services companies, at 73 deals worth $223 million, attracted 78 per cent of VC investments (69 per cent in value terms).

Healthcare and life sciences companies followed a distant second attracting six investments worth $25 million.

Top destinations

Bengaluru continued to be the top destination for VC investments in June, grabbing 36 per cent of investments by volume or number of deals, followed by NCR, which grabbed 30 per cent. Mumbai-based companies came third with 23-per cent share, the release said.

Published on July 01, 2016
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